CFTC set to probe SRO practices

US futures regulators are to examine whether for-profit
exchanges should be allowed to continue with their
self-regulatory functions, following suggestions from some
quarters that the current system is open to abuse.

During a Chicago visit last Wednesday, Newsome told FO
Week, "The role of firms has changed and they are even
sometimes competitors with exchanges," Newsome said. "So you've
got an exchange that is an SRO, coming in with an audit and
looking at proprietary information. Are there proper firewalls
between the exchange compliance staff and their staff so this
information is not used in an improper manner?"